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Stamps.com (STMP) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Stamps.com closed at $124.18, marking a -0.07% move from the previous day. This move lagged the S&P 500's daily gain of 2.28%. Elsewhere, the Dow gained 2.24%, while the tech-heavy Nasdaq added 1.72%.

Prior to today's trading, shares of the online postage provider had lost 6.99% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 10% and the S&P 500's loss of 16.08% in that time.

Wall Street will be looking for positivity from STMP as it approaches its next earnings report date. In that report, analysts expect STMP to post earnings of $0.96 per share. This would mark a year-over-year decline of 21.95%. Our most recent consensus estimate is calling for quarterly revenue of $131.52 million, down 3.29% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.31 per share and revenue of $587.80 million. These totals would mark changes of -24.78% and +2.79%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for STMP. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. STMP is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, STMP is currently trading at a Forward P/E ratio of 28.87. Its industry sports an average Forward P/E of 19.31, so we one might conclude that STMP is trading at a premium comparatively.

Meanwhile, STMP's PEG ratio is currently 1.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.25 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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